This is from a utility app on the iPhone 4 with Apple’s new mobile ad network, iAD, integrated. The developer posted details of his earnings onto Hacker News and I’m sure Apple will enjoy a little positive press because the returns are outstanding.
Compare these to the earnings from a random Android app with Ad-Mob integration and the figures should speak for themselves.
Click Through Rates are around five times higher and iAd’s eCPM (Effective cost-per-thousand impressions) – which is calculated by dividing total earnings by total number of impressions in thousands – is off the charts in comparison to one developers Ad-Mob’s results above.
That said, it’s early days and as the developer mentions himself, iAds are still a novelty and something people are likely to click through to see if they haven’t already. They are, after all, a big leap forward from your standard mobile ads:
According to Apple CEO Steve Jobs, iAd sales are already at $60 million–developers will earn 60 percent of all iAd revenues, translating to pre-launch earnings of $36 million. Brands including Nissan, Citi, Unilever, AT&T, Sears, Target, JC Penney and Best Buy have so far signed on.
That’s incredible compared to Ad-Mob. This is the reason why everyone loves Apple so much!
I’ve looked at iAd from afar until now…I might trial it shortly. Though I absolutely agree on your point about novelty and initial excitement – there will undoubtably be a decrease and plateau in CTRs once this buzz has died down.
I am gonna turn to iAd as there is few incoming in admob.
Ha, you guys are suckers. These ads will all start high and by the end of the month will be earning eCPM’s of < $2.
Yes, that's what happens when new mediums are used. Banner ads used to get 15% click throughs, PPC used to convert…
Apple fan boys are such suckers…. pony up kids you're about to be taught a very expensive lesson.
“Ha, you guys are suckers. These ads will all start high and by the end of the month will be earning eCPM’s of < $2."
While eCPMs will certainly drop as click-throughs decrease due to novelty wearing off, it'll still be a heck of a lot more than <$2.
The base CPM Apple is charging is $10, of which $6 goes to the dev. There's an additional $2 (or $1.20 to the dev) for each click-through.
Apple had $60 million committed by advertisers through the end of 2010, and I'm sure more is being lined up. You can bet they'll be able to sustained these rates. Dev demand exceeding ad supply may eventually result in low fill rates in enough advertisers don't come on board, but for those spots that get filled, eCPM should remain very high.
You compare numbers from a happy developer about 1 day results vs a “random” developer who is shilling against admob for Mobclix, based on 2 MONTHS results?
Feeling the legendary Apple PR pressure after posting something negative?
iAds looks like a good solution down the road – As a developer, the present challenge is that it appears that iAds will only run on Apple devices running iOS 4. Since iOS4 just came out, only a fraction of the 100 million+ devices are running iOS4.
It’s the age old dilemma of “do you build it now – or wait until the market is on the latest OS?”
This isn’t a very fair comparison. The iAd’s click through rate is going to drop to less than 2% almost guaranteed. Just like every other ad medium people start to tune them out. Maybe, if a dev is lucky, he’ll get up to a 5% click through, but this would be pure luck.
Look at average click through rates if you don’t believe me. In most cases, its <1%.